S&P cuts K&H Bank, Central - European International Bank

Standard & Poor's said it lowered its counterparty credit ratings on K&H Bank and Central - European International Bank Ltd. (CIB) to BBBpi from A-pi.

These rating actions follow the lowering of the long-term sovereign credit ratings on the Republic of Hungary to BBB+ from A-, the agency noted.

According to the agency, the lowering of the long-term sovereign credit ratings on Hungary reflects the continued deterioration of the country's public finances, as evidenced by very high general government deficits and quickly rising government debt figures.

S&P noted that the ratings on the banks reflect their strategic importance to and increased integration with, their majority owners, adding that CIB is wholly owned by Banca Intesa SpA (A+/stable/A-1), while K&H is 99.6%-owned by KBC Bank N.V. (A+/positive/A-1).

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